Online Motor Insurance: Why You Should Consider It
Direct insurers account for about 90 percent of the motor insurance market in Australia and nearly 65 percent in the United Kingdom.
Closer to home, they have a market share of about 20 percent in Korea. Direct auto insurance is a relatively new arrival in Singapore, but an increasing number of motorists are opting for it.
Here are five reasons why you too should consider going online for your next car insurance policy.
1. Online car insurance can cost less
Yes! Getting a car insurance policy online can actually work out to be cheaper than buying it from a physical retailer.
This cost advantage has been achieved through a variety of strategies. These include being careful to insure relatively ‘safe’ motorists, rewarding consistent safe driving and most importantly, cutting out the insurance agent.
2. No insurance agents = better rates
Being online removes the need for auto insurance providers to use insurance agents, making it possible for you to deal directly with them.
You can thus save money on agent commissions and also get the added benefit of potentially more competitive policy charges.
Consider the illustrative example below:
Insurance agents usually charge a commission that ranges from 10 to 50 percent of the insurance premium. The average car insurance premium is about S$1250 to S$1300. This means that you could end up paying at least S$190 in commissions alone!
Do you really want to pay an insurance agent that much for something that you can easily do yourself?
One more thing you may want to consider is that insurance agents generally recommend only those providers who pay them a commission. This means that you may not always get an overview of the full range of motor insurance options that are available to you.
If you still think that online car insurance is too complicated for you, read on to find out why it actually isn’t so.
3. Security, simplicity & convenience
Many reputable online auto insurance providers lay great emphasis on making it simple for the customer to purchase an insurance policy that best suits their needs, securely and with ease. Their websites are thus laid out to offer the best possible customer experience.
Free insurance quotes can be obtained fairly quickly and policies can be purchased just as fast. Jargon is kept to a minimum to avoid confusion and complicated terms are simplified wherever possible.
Customers can also easily access a range of customizable plans, select optional extras and buy the most appropriate level of cover that they need. Online insurance providers have also made it very simple to renew or modify one’s policy whenever required.
4. Equally smooth claims processes
The advantage of simplicity that online insurance providers offer extends to their claims processes as well.
Most reputed online insurance firms have a simple yet detailed webpage on the procedure to be followed along with the documents that are required for smoother processing of a claim. If you follow your online insurer’s instructions, your claim can actually be settled quickly!
5. Quality of service on par with physical retailers
Online car insurance providers generally supplement their insurance policies with an excellent range of related services that easily match those offered by physical retailers. These services generally include:
- 24/7 accessibility – online as well as via telephone
- Speedy assistance in case of an accident
- Provider-approved workshops to carry out repairs at special rates
- 24-hour breakdown assistance